Mercuria Energy Group Ltd. is a Cypriot-domiciled Swiss[1] multinational commodity trading company active in a wide spectrum of global energy markets including crude oil and refined petroleum products, natural gas (including LNG), power, biodiesel, base metals[2] and agricultural products.[3] The company is one of the world's five largest independent energy traders and asset operators and is based in Geneva, Switzerland, with 37 additional offices worldwide.[4] The group operates in 50 different countries.[5]
 | |
| Formerly | J&S Group |
|---|---|
| Company type | Private |
| Industry | Commodity |
| Founded | 2004 |
| Founders | Marco Dunand (CEO) Daniel Jaeggi (president) |
| Headquarters | Geneva, Switzerland |
Number of locations | 37 |
Area served | Global |
| Products | Raw materials Energy products |
| Revenue | US$174 billion (2022) |
| |
Number of employees | 1,200 (2020) |
| Website | www |
Mercuria was started in 2004 by Marco Dunand and Daniel Jaeggi, then executives at Phibro, the commodities trader sold by Citigroup to Occidental Petroleum in 2009.[6] The company focused mostly on oil trading until 2007.[7] Prior to this, Mercuria was assumed control of J&S Group, which was named after the Polish businessmen Gregory Jankilevitsch and Wiaczeslaw Smolokowski.[8][9] They and their affiliates joined as founders of Mercuria, and they remain as shareholders today.[10]
Operations
Mercuria, in 2017, moved about 1.5 million barrels per day (240,000 m3/d), of crude and oil products and has upstream and downstream assets ranging from oil reserves in Argentina, Canada and the United States, to oil and products terminals in Europe and China, as well as substantial investment in the bio fuels plants in Germany and the Netherlands.[11]
Its subsidiaries include Navitas Energy in Canada[12] and Vesta Terminal Services in Europe,[13] which operates port logistics, storage and processing facilities in the Netherlands, Estonia, Belgium, and Germany. Mercuria, the former owner of Vesta Terminal, entered into a joint venture with Sinopec by selling 50% of the terminals in 2013.[14]
Mercuria is active players in energy and renewable markets through investments in the energy transition, with a particular focus on the United States and Europe.[15] The company told Bloomberg that half of its portfolio wiould be in renewables in the next five years, and that it had already committed to invest over $2 billion into the energy transition.[15]
History
As the company expanded, it has hired traders and investment professionals from Morgan Stanley, Goldman Sachs, Louis Dreyfus Group[16] and Electrabel in London.[17] In November 2010, Mercuria Energy bought MGM International Group from Morgan Stanley Capital Group Inc. and MGM International LLC.[18] The Miami, Florida-based MGM International Group is a developer of international projects to reduce greenhouse gas emissions.
In 2014, Mercuria bought part of JPMorgan's physical commodities trading business for a reported US$3.5 billion.[19][20] Magid Shenouda, the former co-head of commodities trading at Goldman Sachs Group Inc, joined Mercuria as a shareholder, global head of trading and deputy CEO.[21]
In January 2016, Mercuria announced that ChemChina had bought a 12% stake in the company.[22]
In 2018, Mercuria agreed to acquire 30% of Aegean Marine Petroleum.[23] After Aegean Marine was reorganized,[24][25] in 2019, Mercuria acquired bankrupt Aegean Marine Petroleum Network Inc and restructured the company to operate as Minerva Bunkering, a physical supplier of marine fuels and a fully-owned subsidiary of Mercuria Energy Group Limited.[26][27][28][29]
In 2020, Mercuria had its best year ever, earning $786 million with revenues in line with commodity prices to about $85 billion. The company's gross profit on sales for the year was $1.86 billion.[30][31]
In 2021, Mercuria bought the clean energy specialist Beyond6 from HC2Holdings for $169 million.[32] In November 2022, it was announced Beyond6 has been acquired by the Chevron Corporation subsidiary, Chevron USA Inc.[33] In April 2024, Bloomberg reported that Mercuria Energy Group was preparing to start trading in Japan’s physical power market.[34] In June 2024, the company was reportedly seeking to expand in the metals sector.[35]
Subsidiaries
- Mercuria Commodities Canada Corporation[36]
- Minerva Bunkering
- Mercuria Energy Netherlands B.V.[37]
- Unico Investments B.V.
- Mercuria Energy Group Holding
- Mercuria Investments US
- Mercuria Energy Asset Management B.V.
- Mercuria (China) Metal Resources Co Ltd[38]
- J.P. Morgan Energy Europe Ltd
- Upstream Capital Partners VI Limited
- AU Energy B.V.
- Mercuria Energy Group Holding SA
- Mercuria UK Llp
Controversy
Pakistan's Federal Investigation Agency (FIA) has opened an investigation into senior Mercuria executives, including CEO Marco Dunand.[39] According to the Pakistani press, the investigation would focus on allegations of fraud, scam and breach of trust linked to Mercuria's activities in Congo-Brazzaville and its transactions with Eleven Consultancy, a trading company based in the United Arab Emirates. The ramifications could be extensive, and may result in further corruption charges being uncovered.[40] Other leaders would be concerned, including Laoye Abiola, Guillaume Vermerch, Gareth Bradley and consultant Faysal Khan.[41]
Further reading
- Goldthau, Andreas; Hughes, Llewelyn (2020). "Saudi on the Rhine? Explaining the emergence of private governance in the global oil market". Review of International Political Economy. 28 (5): 1410–1432. doi:10.1080/09692290.2020.1748683. ISSN 0969-2290.
References
External links
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